Midas Funds

Fund Strategies and Market Commentaries
As of May 17, 2016

Midas Magic looks to invest in companies with strong operations showing superior returns on equity and assets with reasonable valuations in seeking its investment objective of capital appreciation.  The Fund focuses primarily on large companies, with a broad orientation towards conservatively priced value stocks and selected growth issues.  Relative to the S&P 500, the Fund’s portfolio is over-weighted heavily in financial services and to a lesser degree in consumer cyclical companies, and is underweight in real estate, energy, industrials, and consumer defensive stocks.  Portfolio holdings of International Business Machines Corp. and Laboratory Corp of America Holdings have recently added to the Fund’s returns, offset to some extent by declines in its holdings of retailing companies.  The Fund has decreased its leverage to take a more moderate posture, and may further reduce or eliminate leverage subject to market conditions.

Midas Fund continues to seek investments in higher quality senior and intermediate producers of precious metals and other natural resources with a growth component.  The gold price has fluctuated between roughly $1,070 and $1,300 per ounce so far during 2016, and the Fund’s portfolio has kept pace with this increase.  The Fund’s holdings of Platinum Group Metals Ltd. and Resolute Mining Ltd. have continued to lead performance in the portfolio recently, while holdings of a quality producer, whose operations were surprisingly impacted by commissioning and other technical issues, underperformed.  The Fund's current strategy is to remain moderately leveraged but seek a more defensive posture should the gold market appear to be re-trenching.

Midas Perpetual Portfolio uses a core “asset allocation” strategy to seek its investment objective to preserve and increase the purchasing power value of its shares over the long term.  The Fund’s asset allocations and target percentage ranges are gold (10-30%); silver (0-20%); Swiss franc assets (10-30%); hard asset securities (15-35%); and large capitalization growth stocks (15-35%). In the recent period, the Fund has benefited from its allocation to hard asset securities, including South32 Ltd., a diversified metals and mining company, and Sociedad Quimica Y Minera De Chile SA, an integrated producer of potassium nitrate and iodine chemicals. In light of the proposed merger of the Fund into Midas Fund as described in the Fund’s prospectus (the “Reorganization”), it is currently anticipated that, subject to market conditions and the discretion of the Fund’s investment manager, the Fund may purchase or sell securities in anticipation of the Reorganization as well as within the normal course. Moreover, one of the Fund’s Swiss franc denominated bonds matured in March 2016 and the Fund currently holds the proceeds in a U.S. denominated money market fund, instead of using the proceeds to purchase additional Swiss franc assets. Accordingly, the Fund’s actual percentage of its total assets invested in the Swiss franc assets investment category may vary from its target percentage range.

Cautionary Note Regarding Forward Looking Statements

This release may contain certain “forward looking statements” as defined under the U.S. federal securities laws. Generally, the words “believe,” “expect,” “intend,” “estimate,” “anticipate,” “project,” “will,” and similar expressions identify forward looking statements, which generally are not historical in nature. Forward looking statements are subject to certain risks and uncertainties that could cause actual results to materially differ from a Fund’s historical experience and its current expectations or projections indicated in any forward looking statements. These risks include, but are not limited to, equity securities risk, corporate bonds risk, credit risk, interest rate risk, leverage and borrowing risk, additional risks of certain securities in which a Fund invests, management risk, and other risks discussed in each Fund’s filings with the Securities and Exchange Commission. You should not place undue reliance on forward looking statements, which speak only as of the date they are made. Each Fund undertakes no obligation to update or revise any forward looking statements made herein. There is no assurance that each Fund’s investment objectives will be attained.